Lew attacks RBA over mining boom

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RETAIL mogul Solomon Lew has blasted the Reserve Bank for its mishandling of the mining boom saying its board lacked an understanding of the broader Australian economy and needed to immediately slash interest rates by as much as 75 basis points to revive spluttering economic growth across the eastern seaboard.

In a broadside on the RBA's recent performance, the former RBA board member questioned if the organisation fully understood what was going on in the economy and especially the dire state of retailing.

''I really believe the RBA has mishandled the mining boom to the great detriment of the non-mining sector, in particular retail,'' Mr Lew said, in comments made during the presentation of the latest financial results for his retail group Premier Investments.

''With great respect, the RBA needs to drop interest rates immediately and I'm not talking about 25 basis points they need to help stimulate confidence at a time when all of Australia should be booming,'' he said.